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Australian tree species selection in China

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  • McKenney, Daniel W.

Abstract

The Australian Centre for International Agricultural Research (ACIAR), through collaborative projects with the Commonwealth Scientific and Industrial Research Organisation (CSIRO), Australia, and the Chinese Academy of Forestry (CAF), has been involved in tree species selection trials in southern China since 1984. The trials were aimed at identifying fast-growing species of Eucalyptus, Acacia and Casuarina. The Chinese have been planting Australian tree species for more than 100 years, but before the ACIAR project there had been little progress in determining which species and provenances would be best for the local climate and soils. This paper presents an assessment of the economic impact of research undertaken under two ACIAR-supported projects. Adoption of some new introductions has been much greater and sooner than previously anticipated. Using a 5% discount rate, base-case benefit estimates suggest the future stream of economic gains to China have a net present value of $A122.3 million in 1996 dollars. The internal rate of return is 35%, indicating the research was a particularly valuable investment. While some uncertainty inevitably remains with this estimate, enough time has passed to be confident about these results. The benefit estimates are large by most standards, particularly for forestry research, which is usually characterized by long lag periods between the research, adoption and harvesting phases. In this case research and adoption lags were short, productivity gains large and adoption levels high. The Chinese are currently planting more than 85 000 ha of the new introductions annually. In fact plantations of the new introductions are already being harvested. The ‘in-hand’ net present value of the projects to 1999 is A$3.8 million ($1996). This indicates that substantive net economic benefits from the research have begun to flow.

Suggested Citation

  • McKenney, Daniel W., 1998. "Australian tree species selection in China," Impact Assessment Series (IAS) 47500, Australian Centre for International Agricultural Research.
    • Handle: RePEc:ags:aciias:47500
    DOI: 10.22004/ag.econ.47500
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    References listed on IDEAS

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    1. Davis, Jeff & Bantilan, Ma Cynthia, 1991. "Agricultural Production Response and Cost Structures: Cost Reduction and Output Increasing Linkages for Research Impacts," ISNAR Archive 310659, CGIAR > International Food Policy Research Institute (IFPRI).
    2. Hof, John G. & Lee, Robert D. & Dyer, A. Allen & Kent, Brian M., 1985. "An analysis of joint costs in a managed forest ecosystem," Journal of Environmental Economics and Management, Elsevier, vol. 12(4), pages 338-352, December.
    3. Davis, Jeffrey S. & Bantilan, Ma Cynthia S., 1991. "Agricultural Production Response and Cost Structures : Cost Reduction and Output Increasing Lineages for Research Impacts," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145853, Australian Agricultural and Resource Economics Society.
    4. George W. Norton & Jeffrey S. Davis, 1981. "Evaluating Returns to Agricultural Research: A Review," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 685-699.
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    Cited by:

    1. McLeod, Ross, 2003. "Improved Methods for the Diagnosis and Control of Bluetongue in Small Ruminants in Asia and the Epidemiology and Control of Bovine Ephemeral Fever in China," Impact Assessment Series (IAS) 113226, Australian Centre for International Agricultural Research.
    2. McLeod, Ross, 2001. "Control of Footrot in Small Ruminants of Nepal," Impact Assessment Series (IAS) 47694, Australian Centre for International Agricultural Research.
    3. Pearce, David & Monck, Michael & Chadwick, Kevin & Corbishley, James, 2006. "Benefits to Australia from ACIAR-funded Research," Impact Assessment Series (IAS) 113213, Australian Centre for International Agricultural Research.
    4. Pearce, David, 2002. "Measuring the poverty impact of ACIAR projects: a broad framework," Impact Assessment Series (IAS) 47697, Australian Centre for International Agricultural Research.
    5. Venn, Tyron J., 2005. "Financial and economic performance of long-rotation hardwood plantation investments in Queensland, Australia," Forest Policy and Economics, Elsevier, vol. 7(3), pages 437-454, March.
    6. Bauer, Marcia & Pearce, David & Vincent, David P., 2003. "Saving a Staple Crop: Impact of Biological Control of the Banana Skipper on Poverty Reduction in Papua New Guinea," Impact Assessment Series (IAS) 113227, Australian Centre for International Agricultural Research.
    7. van Bueren, Martin, 2004. "Eucalypt Tree Improvement in China," Impact Assessment Series (IAS) 113221, Australian Centre for International Agricultural Research.
    8. McLeod, Ross, 2003. "Improved Methods in Diagnosis, Epidemiology, and Information Management of Foot-and-Mouth Disease in Southeast Asia," Impact Assessment Series (IAS) 113248, Australian Centre for International Agricultural Research.
    9. Harris, David N., 2006. "Water management in public irrigation schemes in Vietnam," Impact Assessment Series (IAS) 113170, Australian Centre for International Agricultural Research.
    10. Pearce, David & Monck, Michael, 2006. "Benefits to Australia of selected CABI products," Impact Assessment Series (IAS) 113171, Australian Centre for International Agricultural Research.
    11. Warner, Robert & Bauer, Marcia, 2002. "Mama Lus Frut scheme: an assessment of poverty reduction," Impact Assessment Series (IAS) 47698, Australian Centre for International Agricultural Research.
    12. van Bueren, Martin, 2004. "Acacia Hybrids in Vietnam," Impact Assessment Series (IAS) 113223, Australian Centre for International Agricultural Research.
    13. Pearce, David, 2005. "Identifying the Sex Pheromone of the Sugarcane Borer Moth Economic impact of ACIAR project CS2/1991/680," Impact Assessment Series (IAS) 113216, Australian Centre for International Agricultural Research.
    14. Corbishley, James & Pearce, David, 2006. "Zero Tillage for Weed Control in India: the Contribution to Poverty Alleviation," Impact Assessment Series (IAS) 113172, Australian Centre for International Agricultural Research.
    15. Jiang, Tingsong & Pearce, David, 2005. "Shelf-life Extension of Leafy Vegetables: Evaluating the Impacts," Impact Assessment Series (IAS) 113218, Australian Centre for International Agricultural Research.

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